The Week UK 17.08.2019

Shares CITY 55

17 August 2019 THE WEEK

Coca-Cola HBC
The Times
This blue-chip Coca-Cola
bottler is moving into the
fast-growing “adult soft
drinks” market. Despite
aprofit miss blamed on
restructuring costs, revenue
growth is expected to be 5-6%.
Buy. £27.99

Hastings Group
The Times
The car insurer has suffered
falling prices and margin
erosion. But thanks to its
technology-focused model,
it has 2.8 million customers
and almost 8% of the market,
and is winning new business.
Buy. 185.25p.

H&T Group

The Daily Telegraph

The pawnbroker is offering

more services from existing

shops (such as loans and

forex), selling more online and

expanding its UK footprint.

Strongly cash-generative with

growing profits anda3.4%

yield. Buy. 325p.

InterContinental Hotels

Group

Investors Chronicle

The hotel operator is looking

to the “long-term health of

established brands”, including

Six Senses and Crowne Plaza.

Its asset-light model isaboon,

and efficiencies are funding

growth. Buy. £51.88.

Tesco

Investors Chronicle

Tesco is overhauling its

Metro and Express stores

to meet customer demand

for convenience. Flexible

in-store workers and a

“leaner management structure”

promise to cut costs and

boost margins. Buy. 216p.

UDG Healthcare

The Times

After offloading its distribution

business in 2016, the healthcare

services group’s profits are

“well ahead”, supported by

underlying growth andaboost

from acquisitions. There’s

firepower for more bolt-on

deals. Buy. 773p.

Who’s tipping what

The week’s best shares

...and some to hold, avoid or sell

International Airlines Group
Investors Chronicle
Failure to overturn threatened
strikes by BA pilots is the
latest bout of turbulence to
hit IAG. Rising fuel costs and
emissions charges have sent
operating profits into decline,
and the dividend is vulnerable.
Sell. 454p.

Kier Group
Investors Chronicle
Although the contractor
is selling its housebuilding
business to reduce debt, it has
warned that 2019 revenue
will be about £100m below
last year. This is the most
shorted stock on the London
exchange. Sell. 85p.

Majestic Wine

The Daily Telegraph

The wine retailer has agreed

to sell its shops for about

£100m to pay off debts, invest

in the Naked Wines online

business and payaspecial

dividend.Agrowth business

with potential to crack the US

market. Hold. 274p.

Marston’s

The Daily Telegraph

Slowing sales momentum at

the brewer and pub group is

being offset by the plan to

reduce debt by £200m and

focus on improving existing

sites. Cashflow should benefit,

underpinning the 7% yield.

Hold. 106.9p.

Pendragon

The Sunday Times

The owner of car retailers

Stratstone and Evans Halshaw

has suffered boardroom

disruption,achanging

market andadecline in

new car registrations. Shares

are atanear seven-year low.

Avoid. 11.2p.

RPS Group

Investors Chronicle

This industrial consultancy has

been hit byalull in Australian

infrastructure spending and

political uncertainty in the

UK. Margins have been

squeezed in all divisions, and

dividend payments have

halved. Sell. 139p.

Directors’ dealings

Compass Group

Shares in the food services

provider reached an all-time

high last month, prompting

COO Gary Green to take

advantage of the performance.

He sold shares worth £2.87m

for “personal reasons”,

retainingaholding of 191,382.

Form guide

Shares tipped 12 weeks ago

Best tip

Games Workshop Group

Investors Chronicle

up 3.1% to £45.94

Worst tip

Workspace Group

The Times

down 16.51% to 801.5p.

Market view

“US equities are at the

second most expensive

period in 150 years...Idon’t

think it’saquestion of

whether we’ll seeacrash

–the question is why we

haven’t seen one yet.”

Ulf Lindahl of AG Bisset

Associates. Quoted in the FT

SOURCE: INVESTORS CHRONICLE

Market summary

6-month movement in the FTSE 100 index

13 Aug 2019 Week before Change (%)

FTSE 100 7250.90 7171.69 1.10%

FTSE All-share UK 3961.16 3920.70 1.03%

Dow Jones 26320.83 25829.08 1.09%

NASDAQ 8017.85 7776.83 3.10%

Nikkei 225 20455.44 20585.31 –0.63%

Hang Seng 25281.30 25976.24 –2.68%

Gold 1504.70 1465.25 2.69%

Brent Crude Oil 61.35 59.61 2.92%

DIVIDEND YIELD(FTSE 100) 4.49% 4.50%

UK 10-year gilts yield 0.49 0.51

US 10-year Treasuries 1.68 1.74

UK ECONOMIC DATA

Latest CPI (yoy) 2.1% (Jul) 2.0% (Jun)

2.9% (Jun)

+5.7% (Jun)

Latest RPI (yoy) 2.8% (Jul)

Halifax house price (yoy) +4.1% (Jul)

£1 STERLING $1.206 E1.079 ¥128.348

Key numbers for investors Best and worst performing shares Following the Footsie

WEEK’S CHANGE, FTSE 100 STOCKS

RISES Price %change

Just Eat 812.00 +9.82

WPP 976.00 +7.89

Flutter Entertainment 6640.00 +6.62

Fresnillo 682.20 +5.80

Phoenix Group Hdg. 693.00 +5.56

FALLS

NMC Health 1894.00 –16.12

Stand.Life Aberdeen 250.50 –11.11

Spirax-Sarco Engr. 7855.00 –8.77

Evraz 556.40 –7.61

BT Group 172.08 –6.53

BEST AND WORST UK STOCKS OVERALL

Cellcast 1.47 +96.67

Mysale Group 3.55 –54.42

Source: Datastream (not adjusted for dividends). Prices on 13 Aug (pm)

Mar Apr May Jun Jul Aug

7,100

7,300

7,500

7,700

Mar Apr May Jun Jul Aug

2,000

1,700

1,800

2,100

1,900

COO

sells 142,180